Pramono: DKI Efforts to Prevent Termination of PPPK Contracts

The DKI Jakarta Provincial Government will endeavour not to terminate the employment contracts of thousands of Government Employees with Work Agreements (PPPK). This position was expressed by Jakarta Governor Pramono Anung Wibowo.

Pramono was responding to the cap on personnel expenditure at a maximum of 30% of the Regional Budget (APBD), which will apply in 2027. “Clearly, the DKI Jakarta Government will strive for no terminations of employment,” said Pramono in a written statement on Sunday, 29 March 2026.

According to Pramono, the DKI Jakarta Government will further study the central government’s policy proposal. Nevertheless, he stated that the provincial government will prioritise maintaining the employment continuity of the staff. “We will study that,” said the politician from the Indonesian Democratic Party of Struggle.

Pramono conveyed that the personnel expenditure restriction is currently still in the discussion stage and has not been finalised by the central government. Meanwhile, in Jakarta itself, he said, there are many PPPK personnel, both full-time and part-time, who have just undergone the appointment process.

Tempo previously reported that the reduction in transfers to regions (TKD) since 2025 has troubled local governments. Several regions have addressed the budget cuts by terminating PPPK employee contracts.

For instance, East Nusa Tenggara Governor Emanuel Melkiades Laka Lena terminated the contracts of around 9,000 government employees with PPPK status in the provincial administration. The reason given is that these terminations are considered able to reduce the personnel salary burden in the East Nusa Tenggara Regional Revenue and Expenditure Budget (APBD) for 2027.

According to Melkiades, the provincial personnel expenditure this year reaches 40.29% of the total 2026 APBD. That figure equates to Rp 2.14 trillion.

This amount exceeds the 30% cap on personnel expenditure from the total APBD as stipulated in Law No. 1 of 2022 on Financial Relations between the Central Government and Regional Governments. The transitional period for implementing this law is five years, or it will apply effectively in 2027.